Tashkent, Uzbekistan (UzDaily.com) –– Over the past period (January-April) 2020, the state of cash circulation in the banking system was formed under the influence of socio-economic processes in the country, in particular, high growth rates in the first quarter of this year and lower economic activity in April.

In January-April 2020, the volume of cash turnover made up 105.5 trillion soums, and compared with the same period of last year increased by 41%.

In particular, the cash flow to banks’ cash desks for this period compared to the same period of last year increased by 39% to 52.1 trillion soums.

During the quarantine declared in the republic, in connection with the coronavirus pandemic, a significant decrease in economic activity was observed, which also affected the flow of cash to the banks. In particular, in April of the current year (7.9 trillion soums), the volume of receipts decreased by 41% compared with March of the current year (13.4 trillion soums).

During the quarantine period, the following factors influenced the decrease in cash receipts from banks:

- restrictions on the movement of citizens and the carriage of passengers (local, air and rail) vehicles;

- suspension of the activities of enterprises, in particular retail trade (except for grocery stores and pharmacies), clothing markets and enterprises that provide paid services;

- extension of the timing of payment of taxes, utilities, interest on loans and other payments.

If in the I quarter of 2020 the volume of cash receipts to bank cash desks exceeded the need for cash, as a result of which 209 billion soums of cash were returned from circulation, the situation that arose in April of this year required an additional issue of cash in the amount of 1.47 trillion soums.

From the beginning of May, cash receipts began to recover. In particular, if in the first 10 days of April of the current year, cash receipts amounted to 2.4 trillion soums, then over the 10 days of May increased by 700 billion soums and amounted to 3.1 trillion soums.

Cash outflows through cash departments of banks (including ATMs) reached 53.4 trillion soums, which is 42% more compared to last year.

The quarantine announced in the republic in connection with the coronavirus pandemic also affected the need for cash, which in April contributed to a significant reduction in the issuance of cash by banks compared to previous months.

This is due to a decrease in cash requirements (to pay wages) by 1.1 trillion soums of business entities suspended their activities, as well as a decrease in the volume of international money transfers and a reduction in the amount of cash allocated for the purchase of cash foreign currency by 2.0 trillion. soums.

In April of the current year, the share of pensions, benefits and social benefits, as well as cash withdrawals from bank cards, increased 56.3% of the total cash issued by banks in the structure of cash requirements.

In January-April 2020, the amount of funds received on bank cards made up 45.8 trillion. soums, and the volume of cash from bank cards - 15.0 trillion soums.

Due to restrictions (suspension of non-food trade, tourism, entertainment and household services) during the quarantine period, an increase in fund balances is observed on bank cards of the population.

In particular, the balances on bank cards as of 1 May 2020 reached 6.4 trillion soums. These indicators compared to 1 March increased by 32.5%, and from 1 April - 16.8%.